Fury as EU pig prices move ahead while Ireland's are static

The IFA National Pigs Committee chairman Tim Cullinan said pig producers are furious with the Southern processors' failure to increase prices this week, despite continental prices increasing by up to 5c/kg. The German prices that have been watched anxiously by all European pig producers moved on by 4c/kg this week, as predicted with the onset of good weather. "We've waited for increases to come all year as debts mounted every week on prices below the cost of production," said Mr. Cullinan. "In meetings, processors have stated time and time again that as soon as the continental price increases, the Irish situation would also improve. Pig producers in Ireland have been patient up to this point and it is the final insult to see the processors return nothing when the situation in other countries finally does improve." He said the IFA had met the retailers and as a result Tesco Ireland announced it would introduce a voluntary country-of-origin labelling scheme for pigmeat from the start of May. Irish farmers understood that this was a substantive development that processors would be able to utilise. However the failure to increase prices shows that the processors are keeping profits for themselves when Irish farmers are crippled with debts, leaving many inviable, he added. The average prices paid across the continent have exceeded Irish prices week on week in 2010 and last week's increases will push the differential out even further, according to the IFA. The British DAPP price, which ha been over the €1.60/kg mark for most of the year, is the price necessary to bring producers out of the difficult monetary situation they have found themselves in. "Do Irish processors want to see Irish pig farmers producing weaners for the export market similar to what is happening in Denmark, where almost 40% of the pigs produced are exported live for finishing and slaughter in other EU countries?" Easing in the value of the euro over the last seven days also makes the UK market more attractive for processors to export to our nearest neighbour. Irish meat commands a premium on the home market similar to the British premium and this must be maximised now to prevent the complete decimation of the industry. "Promises made by the Irish processing sector must now be followed through on. The Irish farmer is still not breaking even despite the fact that factories have been provided them with ample supplies to maximise production efficiency and the considerable progress achieved with retailers. This situation cannot continue. Prices this week must rise."